Lesson Plan

• Describe the formula for price elasticity of demand (PED) and interpret its sign and absolute value.
• Explain how different PED values affect the shape of demand curves (elastic, unitary, inelastic, perfectly elastic/inelastic).
• Apply the PED formula to sketch accurate demand‑curve diagrams for each elasticity category.
• Analyse how PED influences pricing decisions, tax incidence and revenue outcomes.

• Projector or interactive whiteboard
• PowerPoint/Google Slides with PED diagrams
• Graph paper and coloured pencils for each student
• Worksheet containing PED calculation tasks and sketch prompts
• Calculator (or smartphone calculator app)

Begin with a quick poll: “If the price of your favourite snack doubled, would you still buy it?” Use responses to highlight how demand reacts differently to price changes. Review the PED formula from the previous lesson and set the success criteria: students will be able to calculate PED, identify its category, and draw the corresponding demand curve.

1. Do‑Now (5'): Students complete a short exit ticket from the last class calculating PED for a given price‑quantity change.
2. Mini‑lecture (10'): Recap PED formula, absolute values and the five elasticity categories with visual examples on the screen.
3. Guided Practice (15'): Walk through the step‑by‑step method to plot a demand curve for a chosen PED (e.g., |PED| = 1.5). Students follow on graph paper while the teacher models calculations.
4. Collaborative Sketch (12'): In pairs, students select a different PED value (elastic, unitary, inelastic, perfectly elastic/inelastic) and sketch the corresponding curve, labeling axes and PED.
5. Check for Understanding (8'): Each pair presents their diagram; peers use a checklist to verify correct shape and interpretation.
6. Application Discussion (10'): Brief whole‑class discussion on how firms would price‑set or how governments would tax based on the elasticity shown.

Summarise the link between PED values, curve shapes and real‑world decisions. Students complete an exit ticket: write one real‑life example of a good with each elasticity type and predict the impact of a price change. Assign homework to calculate PED for a product of their choice and prepare a one‑page sketch of its demand curve.